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Stephen, based on the rates of adoption of services like Linkedin, Facebook, Twitter etc..., it could be argued that you are 'underestimating' the rate of change social media tools will bring. 

Last year, NPR in the US, reported that the majority of their information regarding the shootings at Ft. Hood came from their reporters talking to the US Army on Twitter. If the US Army is on Twitter...banks cannot be that far behind. 

Maybe we need to get away from this idea that social media even needs a strict ROI? Someone commented on *another* blog that the argument about social media (especially in financial services) was like a bank arguing 15 years ago whether they needed a web site or not. 

That happened. I remember not only when banks debated having a website, but software vendors. I worked for a company two years ago where my boss seemed to be married to his fax machine. 

Today, no one questions setting up a website, or installing telephones (or even keeping that dusty fax machine in the corner). Social media will get there, and it will get there quicker than other communication tools. 

What I think turns people off is idea that social media is an ideology that if they 'just perfected and adhered to' they would open a golden door of new and better business opportunities. Social media is a communications tool, and much like the phone, will become ubiquitous, but it is still a tool. Tools are used by people to make change, not pound change on top of them, and are much less likely to 'demand ROI' 

EL: I got this iin an email today. Thought it was pretty good. Interesting, NeXtStep got recognised, still no ID of Display.IT...

"Even Steve Job's has made mistakes - if you ever meet him ask him if he has any NeXtStep terminals in the attic."

Hello Liz

I don't have a Finextra login (or at least it lapsed some years ago) but still cast an eye over the blogs. The line above caught my eye. 

Although Steve Jobs, after his effective ousting from Apple, failed to make NeXtStep into a consistently profitable business in itself the longer term result has been far from unsuccessful. One could argue that NeXtStep was a mistake, or that it was the therapy that Jobs needed after being chucked out of the company that he set up and loved and where his heart has always lain. Apple's subsequent purchase of NeXtStep led directly to the construction and launch of Mac OSX which used extensive sections from the older Mach kernel code to develop things like the Dock and form what is now, arguably, the most user-friendly OS available. It also led to Jobs' reinstatement within Apple. Ultimately it has been a very good thing for him. The deal wasn't that cheap but look where the company is now on the back of it. So Jobs would now probably be happy to show you round that bit of his attic. Which is not to disagree with your premise, just the particular example. Jobs' mistakes could be, say, the Cube or the Newton which failed to gain ground and were real dead ends. There may well be piles of them upstairs at his gaff. 

The (galling to some) thing about Steve Jobs is that he seems to make fewer mistakes than many, but then I suspect that is why you used him as an example. Maybe the lesson is that while some ideas may not ultimately triumph it would be unwise to write off everyone who says you don't get it. Apple thought Jobs didn't get it back in 1985 and even his potential nemesis John Sculley and Gil Amelio have now admitted how wrong they were. And perhaps this all underlines the point about freedom and innovation. Back a true innovator into a corner and he/she just innovates all the harder. Most of them know full well where the climbing boots are, but they also know that those old boots can only get you so far, that's why noone has gone further. Invention to solve those problems doesn't come from weary cynics' comments but from imaginative optimists who push on when the cynic says give up and employ technologies that the jaundiced eye has overlooked. 

But then again, Liz - your sceptical reaction to "you just don't get it" may ultimately force a rethink in the individual which results in a stronger idea that you can concede that you "get". Or not - if we were really good at spotting the genuinely good ideas we wouldn't be where we are today, we'd be writing from our sun-loungers as major shareholders in, say, Cisco Systems or Apple.....  One can but dream.

Cheers

Pete

In the late 90s, a large European bank made ambitious plans to move from the City to Canary Wharf. They consulted the traders to find out what they wanted - open plan, ergonomic chairs, touch screens etc... They hired an architect - the office was going to be modern, bright, and environmentally friendly. Their office was going to be the envy of Europe.

Then the bank got the bill for moving all the switches and routers and fibre optic cables that sat beneath the raised floor in the trading room. 

A month ago, I took the Central line to go see them, not the DLR.

My point is the same as yours - internal change is hard (and expensive). 

My blog was mostly a reaction to The Future of Money Blog - where the woman said her film went 'over the heads' of the suited 'Matrix clones'. 

First off - Bankers wear suits? OMG, when did that start?

But seriously, her film was interesting. I thought some of the young people interviewed were a tad naive and some gave real insight in how the next generation will live and...of course... bank. I think younger people will generally reject the debt-based economy of loans and mortgages that have handcuffed the older generations - and that will change the way Western capitalism works.

However, the 'over their heads' comment rubbed me the wrong way. Because people watched the film critically, with interest - does not mean it 'went over their heads' or they 'didn't get it'. 

I'm not afraid of putting my opinions out there because I understand there will be people who don't agree - (and more importantly) people who don't agree because they have more experience and knowledge than me. If anyone doesn't 'get' my blog the fault for that lies solely with me and my inability to communicate effectively. That was the biggest lesson I took away from 'journalism' school - if someone doesn't understand you - that's your fault, not theirs.

And, of course, the contrarian in me flinches at the idea of being surrounded by people who always agree with you. Even Steve Job's has made mistakes - if you ever meet him ask him if he has any NeXtStep terminals in the attic. 

Jonathan Williams, of Experian Payments, sent me a Tweet during the Innovation Keynote about the story about the Kodak innovator that was kept in the basement. He argued that maybe it was the ‘struggle' that fuelled his invention, and freedom wouldn't have produced the same results (the digital camera). Maybe, maybe not. But debate is as much a part of innovation as being surrounded by fawning fans. 

Ah, Gary it's only been a week! :-) In words of one Sibos punter last week "Look at this, three years of austerity and now chocolate fountains!"

I forgot to mention I also met Sibos Tweeter extraordinaire - Andrew Carrier! (@AndrewCarrier)

By 'clients' I hope you don't mean retail clients, because that wasn't what we were talking about yesterday.

Citi increasing traffic to their microsite five-fold because of Twitter, or working with 'collaborative' social media with IBM didn't  'float your boat'? SunGard making social media a 'core competency'? SEB creating a forum for client to discuss issues openly? Really, that did nothing? 

Social media is more than a media channel, yes, but it is also more than just a channel to communicate with customers. Banks can use it for training, collaborative development, improving their presence within the industry and of course, gathering their clients in a networked space for better interaction.

Social media is more than just third party, consumer apps. 

Colin, thank you very much for the kind words. It's wasn't only innovative to webcast the panel, but nessasary, we were turning people away at the door!

BTW: Don't know who told you about DB cars, but my six year old will be adding a white DB car to his collection this Friday. (maybe they ran out?!)

"...so SEPA adds little change or functionality to me personally."

I think you've hit the nail on the head there. Why would banks pile resources into Sepa, if does little to improve the services to you, the client.

Therefore, the only incentive banks seem to have is a mandate from their central bank - and the central banks are just shrugging.

Is Sepa a political exercise or a payments innovation exercise?

Good point just mentioned on Twitter (@FinancialBrand) "No numbers divulged, so we'll take their word."

Hmmm, what were those first year predictions? And by how much did they exceed them? Guess, we will just take their 'marketing' word.